A fall in Germany's private sector output in April could signal worse times to come for the shrinking eurozone economy. The continued concerns for the economy in Europe and the low confidence has contributed to the continuing stagnation and drop in activity over the past 20 months. The decline in the German economic engine is very worrying for the rest of the Eurozone as Germany was seen as the largest and strongest, this will only decrease confidence further hurting the Eurozone. Though it is slowing now, people are expecting a gradual recovery in the second half of the year.
The global economy continues to contract under the ever increasing burden of massive debt and the cost of providing all of the social welfare programs the developed world has come to expect. We can assume the same consequences for the US economy will occur in a couple years. Germany and Europe hopefully will regain control of the economy quickly or all around the world we will face economic troubles. It will be interesting to see how Germany will recover as it is considering it is the largest and strongest in the Eurozone.
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